Thursday, February 15, 2007

Online Brokerage Fraud - Millions of dollars loss

2 largest e-brokerage companies in US, namely E-Trade Financial and Ameritrade, reported on a shocking online brokerage fraud through computer criminal hacking which caused millions of dollars losses.

Some of the interesting facts:
  • Estimated losses are $4 and $18 million for Ameritrade and E-Trade Financial respectively.
  • Much of the fraud occurred overseas while clients were using public computers infected with spyware or wireless connections. User IDs and passwords were stolen.
  • Fraud committed against E-Trade customers appeared to be concentrated in Thailand and eastern Europe
  • Hackers are increasingly turning their attention to financial services firms.
  • Identity theft
Read more here from 25th Oct 2006.

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